Smart’s been a problem child for Daimler. Even though it’s one of the newest car companies, it’s already been through failed joint ventures, models cancelled at the last minute and huge underperformance. No doubt that millions – if not billions – of euros have gone west as well.

But Merc has stuck with it. After all, it’s a brand that does make sense. Increasing attention on sustainable transport plays right into Smart’s hands. it also has the potential to attract a certain type of trendy, urban and younger buyer than Mercedes could ever hope to.

So at the unveil of Smart’s two new models in Berlin last night there was a palpable sense of expectation. Not quite admission that there had been past failure and loss-making, but you got the sense that this was a new chapter for Smart and a late, if not final, throw of the dice.

Clearly there was a lot of marketing nonsense and lots of 'aren’t we cool urban living’ puff, but at the end of the day, the cars looked good.

I was especially taken with the new Smart Fortwo, which looks all the better for the makeover. I'm glad to hear that it will have greater high-speed stability and the option of two proper gearboxes, instead of the awful nodding-donkey robotised manual that blighted that last model.

The Forfour is mechanically identical to the new Twingo and is also appealing. Personally, I prefer the look of the Renault, but it’s a close thing.

Best of all, I chatted with various Smart big cheeses, and it is obvious that this is the start of something that could lead to big sales in China and the US, and more models such as a baby SUV (the new For-More?).

Join the debate

The new ForTwo looks way too similar to the old model and so a sales turnaround is unlikely. Worse, it is made in a different factory to the ForFour/Twingo so not many cost savings there. People seem happier with the Renault presumably because it will be cheaper and Renault have far larger dealer coverage. Smart will charge more and yet have no brand cachet to justify this. Smart was and remains a bad idea, prompted by the the early 90's recession and panic in the Daimler boardroom. They may have cut costs (with Renault) but this model will do nothing for low sales.

I think the new Fortwo looks different enough from it predecessors to be a success. In my opinion, the looks of the second generation played a major part in it's failure to cement it's position as the default choice for urban dwellers. This model's chunkier stance and choice of gearboxes is sure to help increase sales, but only if they get the price right. But by all accounts, the £11k that is being suggested is way too expensive. £9k would be a more realistic starting point for the Fortwo (even this is still about £700 more than a base VW up!) with the Forfour starting at £9.5k.